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Drax Group PLC (DRXGY) is a UK-based renewable energy company engaged in renewable power generation, the production of sustainable biomass, and the sale of renewable electricity to businesses.

It operates a generation portfolio of sustainable biomass, hydroelectric, and pumped hydro storage assets across four sites in England and Scotland.

The company also operates a global bioenergy supply business with manufacturing facilities at around 13 sites in the United States and Canada, producing compressed wood pellets for its own use and for customers in Europe and Asia.

 Drax Group plc was incorporated in 2005 and is based in Selby, the United Kingdom.

Three key data points gauge

Drax Group PLC or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

DRXGY Price

Over the past year, DRXGY's share price fell 28.4% from $17.80 to $12.75 as of Tuesday’s market close.

If DRXGY trades in the range of $10.00 to $15.00 this next year, its recent $12.75 share price might rise to $13.35  by next year. Of course, Drax Group PLC's price could drop about the same $0.60 estimated amount or more.

My annual upside estimate of $0.60 however, is about equal under the average annual price increase over the past five years.

DRXGY Dividend

Drax Group PLC has paid Semi-annual variable dividends since October 31, 2011. DRXGY’s most recent SA dividend of $0.22 was paid on October 23, 2023, to shareholders of record on August 23rd. The forward-looking $0.53 annual dividend yields 4.16% at Tuesday’s $12.75 share price.

DRXGY Returns

To put it all together, add the estimated annual dividend of $0.53 to the price upside of $0.60 to find a $1.13 gross gain.

At Tuesday’s $12.75 share price, a little under $1000 would buy 78 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us  $0.13 per share.

Subtracting that likely $0.13 brokerage cost from the $1.13 gross gain produces a net gain of $1.00 X 78 shares = $78.00 for a 7.85% estimated net gain.

You might choose to pounce on Drax Group PLC It is an 18 year-oldUnited Kingdom-based, renewable energy outfit. Furthermore, the estimated $41.60 dividend income from $1k invested is  3.26 times greater than DRXGY’s $12.75 single share price.

The exact track of Drax Group PLC’s ongoing future price and dividend is yet to be known.

Remember the true value of any stock is best realized through personal ownership of shares.

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